Vanguard launches new fixed income UCITS ETF

Vanguard today launches a new fixed income focused Exchange Traded Fund (“ETF”). The Vanguard Global Government Bond UCITS ETF serves as an additional core building block in investors’ portfolios. The ETF will be listed on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Euronext Amsterdam, and SIX Swiss Exchange.

Mark Fitzgerald, head of product specialism at Vanguard Europe, comments: “Investors are often tempted to invest locally when it comes to fixed income, largely out of familiarity. However, the added diversity of a global government bond allocation can reduce the risk of an investor’s fixed income portfolio, without necessarily decreasing the expected returns, provided the currency risk is hedged. By adding global government bonds, investors gain exposure to a greater number of securities, different inflation and economic environments, as well as business cycles from a wider range of markets.”

The ETF seeks to track the Bloomberg Global Treasury Developed Countries Float Adjusted Index. The ETF will be available to investors in the UK and Continental Europe as part of Vanguard’s UCITS range.

The following share classes will be available at launch and carry the following ongoing charges figure^[1]:

The new ETFs will be managed by Vanguard’s Fixed Income Group. The Fixed Income Group manages more than $2.47 trillion^[3] in assets across the globe and draws on the diverse perspectives and knowledge to deliver accurate benchmark tracking, prudent risk management and highly competitive investment performance. With today’s addition to its European offer, Vanguard now offers 34 fixed income index products.

ENDS

Notes to editors:

Where will the ETFs be listed?^[4]

1. Vanguard Global Government Bond UCITS ETF